QUESTION 13 Which of the following is most likely characterized as a low-risk hybrid fund? a....
QUESTION 13
-
Which of the following is most likely characterized as a low-risk hybrid fund?
a. Invests in investment grade bonds and large company equities with brand name product lines.
b. Invests in combination of money market securities and shorter-term bonds.
c. Invests in equity securities that have low levels of systematic risk.
d. Invests in bonds with low interest rate risk and low default risk.
QUESTION 14
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The Hound Dog Growth Mutual Fund is a highly sought-after investment that owns $50 million in marketable securities, has $10 million worth of liabilities, and has 2 million outstanding shares. At what price should the fund’s shares trade?
a. $20.00.
b. A premium above $20.00.
c. $25.00.
d. It depends on the supply and demand for the shares; however, it should be close to if not exactly $20.00.
Homework Answers
The following is most likely characterized as a low-risk hybrid fund:-
a. Invests in investment-grade bonds and large company equities with brand name product lines
Fund's price:
=Total assets-liabilities/shares =(50-10)/2 =20
a. $20.00.
Add Answer to:
QUESTION 13
Which of the following is most likely characterized as a
low-risk hybrid fund?
a....
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